Add to the docs
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When you go to replace the username and password in the config.xml file, its best done during a Reset App action instead of stopping then starting the app process.
I found having two windows open, one to restart the app and the other to remove the necessary lines and hit save PRIOR to the app restarting. The lines removal MUST be done immediately after selecting restart app.
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Changing the password is indeed a bit cryptic. You can change it from the GUI instead of editing the xml file. I suspect that it is rehashing the plain text password and restarting itself when you edit the file directly. Put a screenshot and note here on how to change it from GUI - https://docs.cloudron.io/apps/syncthing/#changing-password